OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          APPEAL OF                              DOCKET NO.:EC130403RO
               RICH ASSOCIATES                   RENT ADMINISTRATOR'S
           c/o E. QUITT                          DOCKET NO.:BL130101OM
                                PETITIONER    : 


          On March 22, 1990 the above-named petitioner-owner filed an 
          administrative appeal against an order issued on February 26, 1990 
          by the Rent Administrator (92-31 Union Hall Street, Jamaica, New 
          York) concerning the housing accommodations known as 104-24 90th 
          Avenue, Richmond Hill, New York, various apartments, wherein the 
          Administrator denied the owner's major capital improvement (MCI) 

          The owner commenced this proceeding below by filing with the 
          Division on December 21, 1987 a rent increase application for both 
          rent controlled and rent stabilized apartments based on the 
          installation of a boiler/burner at a total claimed cost of 

          Various tenants of the subject sixteen unit dwelling submitted 
          responses objecting to the owner's MCI application alleging a 
          defective boiler/burner installation.  Two tenants acknowledged 
          that the installation functioned properly.

          A physical inspection of the subject premises was conducted by DHCR 
          on January 4, 1990 wherein the inspector noted that the heat and 
          hot water service was adequate.

          The Rent Administrator denied the owner's application on the 
          grounds that a requisite certificate of electrical inspection had 
          not been submitted.

          On appeal, the owner contends, in substance, that in response to 
          the Division's written requests, he submitted one of the required 
          certificates and informed the Division that the second certificate 
          would be submitted after a March 1990 inspection.  The tenants 
          contend, in substance, that the Administrator's order was correctly 
          decided and should be affirmed.

          After careful consideration of the entire record, the Commissioner 
          is of the opinion that this petition should be granted.

          The record discloses that with the exception of a missing 
          certificate of electrical inspection all necessary governmental 
          approvals and sign-offs plus supporting documentation, (contract, 


          DOCKET NUMBER: EC 130403-RO

          contractor's certification and cancelled checks) had been submitted 
          during the course of the proceeding, for the boiler/burner 
          installation.  In addition, the tenants complaint of defective 
          boiler/burner installation was found to lack merit as heat and hot 
          water service was found to be adequate.  It should further be 
          noted, that the owner responded to DHCR's request for the missing 
          documents, (producing one certificate of approval for the 
          oil/burner installation promptly prior to the issuance of the 
          order) and that the scheduling of the inspection for the remaining 
          missing electrical certificate, (first applied for three years 
          after the application was filed) was outside of the owner's 

          In view of the fact that the owner has completed the application by 
          virtue of submitting the missing certificate of electrical 
          inspection from the Department of Buildings and taking into 
          consideration the size of the subject premises and all factors 
          bearing on the equities of this particular matter the Commissioner 
          is of the opinion and finds that the owner is entitled to a rent 
          increase adjustment of $4.04 per room, per month computed as 
          follows: $10,900.00 (exclusive of sales tax) - 60 months = $181.66 
          - 45 rooms = $4.04.  Said increase is effective for rent stabilized 
          apartments as of May 1, 1990 the first payment date 30 days after 
          the owner completed the instant application by virtue of the 
          submission to the Division of the requisite certificate of 
          electrical inspection and effective for rent controlled apartments 
          as of the first of the month following issuance of this order and 

          As to any apartment which was subject to Rent Control at the time 
          the instant application was filed and which subsequently became 
          subject to Rent Stabilization jurisdiction, the Commissioner notes 
          that since the free market rent charged the first stabilized tenant 
          included any and all services then being provided, and in the 
          absence of a fair market rent appeal, the rent increase provided 
          for in this order is not collectible from the first stabilized 
          tenant or any subsequent tenant of such apartment.

          In accordance with the applicable provisions of the Rent 
          Stabilization Code, as to any tenant who may have moved into a 
          previously stabilized apartment in the subject premises after the 
          instant application was filed, the increase provided for herein 
          shall not be collectible until the expiration of the lease term in 
          effect at the time of the issuance of this order and opinion 
          unless, said tenant's vacancy lease contained a provision that the 
          rent may be increased pursuant to an order issued by the DHCR; that 
          the instant application is pending before the DHCR, including the 
          docket number and basis for the requested increase; and that if 
          granted, the increase may be collectible during the lease term.

          The rent stabilized tenants may pay any arrears in rent resulting 
          from this order to cover the period between the effective date of 
          the rent increase (May 1, 1990) provided for herein and the date of 
          issuance of this order of the Commissioner in 12 equal monthly 

          DOCKET NUMBER: EC 130403-RO

          installments subject to the statutory limitation of collectibility 
          of 6% (of the December 1990 rent roll) for the permanent increase 
          plus 6% for temporary arrears.

          The Commissioner notes that the records of the Division discloses 
          that there are no orders outstanding against the subject premises 
          based on the owner's failure to maintain building-wide services.

          THEREFORE, in accordance with the provisions of the Rent 
          Stabilization Law and Code and the Rent and Eviction Regulations, 
          it is

          ORDERED, that this petition be, and the same hereby is granted; 
          that the order of the Rent Administrator be, and the same hereby is 
          revoked; and that the rents of the stabilized and controlled 
          apartments be, and the same hereby are increased in the manner and 
          effective as hereinabove provided, subject to the limitation on 
          collectibility set forth herein.


                                               JOSEPH A. D'AGOSTA
                                               Deputy Commissioner


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